How can retirement villages offer financial certainty?

How do retirement villages offer financial certainty?

After working hard all our adult lives, it’s only natural that we want to feel financially secure in our later years. This can mean different things for different people but knowing that you can afford your home and the costs associated with it can be a great comfort. For many older people, living in a retirement village can offer them a sense of financial security that other options can’t. We look at the ways in which retirement villages can do this.

Affordability

It’s difficult to watch the news these days and not hear about the housing affordability crisis. Property prices across the country have continued to rise to record levels. This is where retirement villages can offer an affordable option. The price is generally 80% or less of the equivalent type of property in the same suburb, and that is not taking into consideration all the benefits, amenities and sense of community a retirement village can offer. Which is why living in a retirement village is an attractive choice that is growing in popularity for older Australians.

Put simply, by paying less for your home, you will have more in your pocket to help live the way you’d like to live!

Explicit costs

Being in control of your finances and having certainty over your financial future is one of the attributes that many people find attractive about  RetireAustralia’s villages. The majority are leasehold or licence villages with a simple contract that means from the day you move in, you will know the exit entitlement you will receive when you leave. In uncertain times, you may find it comforting to know exactly where you stand financially.

RetireAustralia’s contract suits people who want a high level of clarity and certainty about their financial future and their care and support needs. The Exit Fee or Deferred Management Fee (DMF), which you pay when you leave a retirement village, is capped. The DMF is a percentage of the ingoing contribution and is not impacted by capital loss or gain so you can calculate your exit entitlement at any time and know exactly what you will receive.

What’s more, when the time comes to leave the village, we will prepare, market and sell your home at no extra cost. You won’t be charged sales commission or marketing fees, and you won’t be asked to contribute towards a renovation unless there is exceptional wear and tear or damage.

It’s reassuring to know before you move into a RetireAustralia village that you won’t be up for any unexpected costs when you leave.

No unexpected outgoings

One of the aspects many residents love about living in a retirement village is having the maintenance and garden work taken care of, leaving them more time to do the things they enjoy.

Your regular service charge covers the cost of running the village. This includes rates, building insurance, the 24/7 emergency call system and the village team, who look after things like home and garden maintenance and upkeep of common facilities. While these costs will increase from time to time, by law these charges are based on cost recovery only, meaning village operators cannot profit from them.

This also means that if you live in any of our licence or leasehold villages you won’t be slugged with any unexpected levies to pay for major renovations and upgrades.

What if your situation changes?

If your care needs increase, RetireAustralia offers serviced apartments where our trusted team will take care of housekeeping, maintenance and meals. Located in our villages, you will still retain your independence and make the call on what matters most to you. Should you ever need it, we can also arrange additional care and support tailored specifically to you. No Aged Care Assessment Team (ACAT) or Assets test are required so you can move into your new apartment straight away.

Additionally, RetireAustralia only charges one DMF, so if you move to a serviced apartment within RetireAustralia’s network your DMF calculation does not restart. If the ingoing contribution for your serviced apartment is more than the exit entitlement from your independent unit, you will not be out of pocket.